deflation


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deflation:

see inflationinflation,
in economics, persistent and relatively large increase in the general price level of goods and services. Its opposite is deflation, a process of generally declining prices. The U.S.
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deflation

(ECONOMICS) a decrease over time in the general level of prices, coupled with an overall reduction in the level of economic activity, new investment, etc. (compare INFLATION). In modern capitalist economies, in which inflation tends to be endemic, deflation is usually relative rather than absolute, involving a reduction in rates of price increase rather than an absolute decrease in prices.

Deflation

 

the decrease of monetary volume by means of the withdrawal from circulation of excess paper money. Deflation often precedes monetary reforms. Since World War II deflation has most often been encountered as part of the so-called deflation policy of capitalist states, which aims at stopping or decreasing the rates of growth of monetary volume and commodity prices. Deflation is realized through limitation of credits (an increase in the rate of interest, imposition of credit limits), higher taxes, reduction of expenditures for social and cultural needs, a “freeze” on wages and salaries, and other measures carried out by capitalist states. These measures result in a lowering of the rate of economic development, a deterioration in the living conditions of the toiling masses, and an intensification of the class struggle.


Deflation

 

the disintegration of rocks and soils owing to wind action, accompanied by the removal and wearing away of the broken particles. Deflation is particularly strong in those parts of deserts from which dominant winds blow (for example, in the southern part of the Karakumy desert). The processes of deflation and physical weathering result in the formation of eroded cliffs with unusual shapes, such as towers, columns, and obelisks.

deflation

[di′flā·shən]
(geology)
The sweeping erosive action of the wind over the ground.

deflation

1. Economics a reduction in the level of total spending and economic activity resulting in lower levels of output, employment, investment, trade, profits, and prices
2. Geology the removal of loose rock material, sand, and dust by the wind
References in periodicals archive ?
Deflation can become a vicious cycle: As more people cling tightly to their cash, demand drops further, which causes more deflation, which causes more people to cling to their wallets .
Meat and fish were the only categories to report deflation.
Deflation is one of the problems that European economies are currently battling.
Beijing -- China's annual consumer inflation hit a five-year low in January while factory deflation worsened, underscoring deepening weakness in the economy and heaping pressures on policymakers to inject more stimulus to underpin growth.
QNB has already warned about the dangers of deflation in a series of economic commentaries last year.
In summary, QNB said deflation was starting to spread into lower global consumer prices, depressed wages and, to a lesser extent, softer asset prices.
According to BNZ economists, the deflation period may increase the potential of another interest rate hike into 2016.
Although sometimes confused with deflation, disinflation is not considered to be as problematic because prices do not actually drop.
Clearly, global asset deflation seems to be spreading across different asset classes.
The central bank of Japan has said that the nation is escaping from a deflation trap.
On Thursday, the ECB announced an unconventional package of measures as part of its efforts to prevent deflation and push down the euro, including a negative interest rate for overnight deposits.
The deflation since the beginning of the year is 0.